DTTN s experience on facilitating SME s participation in trade

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1 DTTN s experience on facilitating SME s participation in trade Mr Stephen Cheung, Senior Vice President, Business Development, Tradelink/DTTN Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis May 2009, Beijing, China

2 Agenda Tradelink (B to G) Highlights Digital Trade and Transportation Network (B to B)

3 About Tradelink Publicly listed and traded on the Main Board of The Stock Exchange of Hong Kong 2008 Granted license ( ) to continue provision of government document e-submission services Established in Sep 1988 Government becomes a shareholder Tradelink Beijing Established Being granted license to continue provision of GETS II ( ) Selected by the Government as the developer and operator of DTTN Granted exclusive franchise ( ) to provide e-submission services for certain trade-related documents

Government and Industry Expert Support Key players in the trading

institutions The HK SAR Government 12.29% 43.80% Public Shareholders 43.

in electronic services with Digi-Sign security solutions Digital Trade

4 Government and Industry Expert Support Key players in the trading sector, including trade associations, terminal operators & financial institutions The HK SAR Government 12.29% 43.80% Public Shareholders 43.91% 100% 100% Digi-Sign Certification Services Limited Building trust in electronic services with Digi-Sign security solutions Digital Trade and Transportation Network The digital express link to business partners worldwide

5 Tradelink s Government Services Services Details Import or Export Declaration (TDEC) e-lodgment of import or export declaration with Customs Production Notification (PN) Certificate of Origin (CO) Dutiable Commodities Permit (DCP) Electronic Cargo Manifest (EMAN) (excluding road mode) Notifications under Textiles Trader Registration Scheme (TTRS) e-lodgment of notification to the Trade & Industry Department about cut-and-sewn garments manufactured in HK e-application for CO to the Trade & Industry Department or other government approved organisations e-application for DCP to Customs for import, export, manufacturing or storage of dutiable commodities e-submission of manifests for air, rail, water cargo to the Census Department and the Trade & Industry Department e-receipt of notice / voucher from Customs and e-communication with other government departments e-submission of notification to the Trade & Industry Department for textile trading under TTRS

Government Services Logistics Services Providers Importers Exporters

Tradelink Transaction fee + Gov t fee + e-submission of trade

and validation Secure communication channel 7 x 24 electronic

support and other customer services Paper-to-electronic conversion

6 Government Services Logistics Services Providers Importers Exporters Freight forwarders Carriers Manufacturers Trading Community Tradelink Transaction fee + Gov t fee + e-submission of trade related documents e-confirmation Security Solution Document checking and validation Secure communication channel 7 x 24 electronic interface Document status tracking Hotline & onsite technical support and other customer services Paper-to-electronic conversion service Gov t fee + e-submission of trade related documents e-confirmation The HKSAR Government

7 Our Substantial Customer Base Over 54,000 registered users including manufacturers, importers, exporters, freight forwarders, logistics services providers, and carriers Steady transaction volume over 20 million per annum Dedicated customer services: hotline, onsite technical support, 20 customer services centres, training support, and direct sales team Customer loyalty program - customer magazine, e- newsletter, luncheon seminar and round-the-year loyalty program

China Market Established development Centre in Guangzhou in 2007 Beijing Branch office opened in 2008 Tianjin JV company in 2008 Recognised service provider under the CEPA framework Our Vision for

8 China Market Established development Centre in Guangzhou in 2007 Beijing Branch office opened in 2008 Tianjin JV company in 2008 Recognised service provider under the CEPA framework Our Vision for the China market To facilitate international trade between China and the rest of the world Develop an one-stop e-trade platform in mainland for the Operation and management of the modernized logistics parks E-finance services International connection(via DTTN)

Pan-Asian E-Commerce Alliance (PAA) To provide secure, trusted, reliable and

Established in July 2000 by TradeLink (HK), Trade-Van (TW) and CrimsonLogic

Australia,Philippines and Japan in 2007 Customer base: over 250,000

close relationship with local gov t Mass customer base Long years of

9 Pan-Asian E-Commerce Alliance (PAA) To provide secure, trusted, reliable and value-adding IT infrastructure and facilities to promote intra-regional trade Established in July 2000 by TradeLink (HK), Trade-Van (TW) and CrimsonLogic (SG) Now 9 member economies Jointed by three new members from Australia,Philippines and Japan in 2007 Customer base: over 250,000 organizations Common Strengths Local market leader in e-commerce Strong & close relationship with local gov t Mass customer base Long years of experiences on electronic document exchange, customs declaration, manifests, certificate of origin, licenses services

10 Digital Trade & Transportation Network (DTTN) 10

Key Milestones of DTTN With 3600+ registered customers Becomes Tradelink s wholly owned subsidiary 2009 Full Commercialization 2008 Pilot run 2H

11 Key Milestones of DTTN With registered customers Becomes Tradelink s wholly owned subsidiary 2009 Full Commercialization 2008 Pilot run 2H 2006 Dec 2005 DTTN Limited incorporated Dec Tradelink awarded by the Government as developer and operator of DTTN 2001 Formation of LOGSCOUNCIL

Manufacturers Trade Associations Banks Inspection Agencies Customs Buyers

12 Objective of DTTN Buyers Suppliers Tax Authority Truckers Carriers Terminals Forwarders Sellers Airlines Insurance Institutions Warehouses Manufacturers Trade Associations Banks Inspection Agencies Customs Buyers Manufacturers Carriers Forwarders Trade Associations Insurance Institutions Banks

Key Functions of DTTN An e-business CONNECTOR for the Entire Supply Chain

7 years A Super Electronic Document CONVERSION ENGINE supports any-to-any

13 Key Functions of DTTN An e-business CONNECTOR for the Entire Supply Chain connects all parties along the supply chain to achieve system-to-system integration. A Mega Electronic DATA STORE stores data online for 2 years and offline for 7 years A Super Electronic Document CONVERSION ENGINE supports any-to-any transformation of data format and communication protocols Data Inheritance Feature - Common data can be inherited between documents - Web portal services

Community Role of the DTTN Sellers Buyers Freight Forwarders Inspection Agencies Banks & Financial Institutions Government & Agencies Carriers Insurance Institutions Terminals DTTN Key Services

14 Community Role of the DTTN Sellers Buyers Freight Forwarders Inspection Agencies Banks & Financial Institutions Government & Agencies Carriers Insurance Institutions Terminals DTTN Key Services Offering Electronic message routing services Portal services Statistical and analytical reporting services Electronic message transformation services Data inheritance services Information security services

DTTN to Support the Whole Supply-Chain Support over 80 major documents related to trade, logistics and finance for both import and export business processes Purchase Process

Order, Arrival Notices, Transport Documents - Master / House Waybill - Sea / Air, Cargo Receipt, Transport Set, EIR, Delivery / Release Order Government Trade Documents Export /

15 DTTN to Support the Whole Supply-Chain Support over 80 major documents related to trade, logistics and finance for both import and export business processes Purchase Process Purchase / Sales Order, Order Confirmation Delivery Packing List / ASN, Commercial Invoice, Inspection Certificate, Insurance Local and Overseas Transportation Booking, Shipping Order, Arrival Notices, Transport Documents - Master / House Waybill - Sea / Air, Cargo Receipt, Transport Set, EIR, Delivery / Release Order Government Trade Documents Export / Import License, Customs Clearance, Certification of Origin etc. Financial Settlement Letter of Credit, Company Guarantee, Bill of Exchange, L/C collection Letter; Document Arrival Notice

) using the existing interfaces with no or minimal system changes

16 How to Connect with DTTN Option 1: Direct Integration A simple direct connection with internal application systems (e.g. FMS/ERP/SCM etc.) using the existing interfaces with no or minimal system changes Option 2: Standard Excel Spreadsheets Easily customizable according to your needs

Link with Your Buyers Buyers Suppliers (Type 1) Excel Form User Prepare the PO

Electronic Document Conversion Engine Data Transformation Verification of

System Receive PO & the data will go directly into the internal ERP System

application system & send to the XX via DTTN electronically Receive the PO

17 Link with Your Buyers Buyers Suppliers (Type 1) Excel Form User Prepare the PO by using the Excel Form and send to XX via DTTN electronically. Electronic Document Conversion Engine Data Transformation Verification of digital signature Encryption / Decryption Dispatch the ack / error msg Internal System Receive PO & the data will go directly into the internal ERP System (Type 2) Direct Integration User Prepare the PO by using the existing internal application system & send to the XX via DTTN electronically Receive the PO Confirmation from XX via DTTN electronically Generate & return the PO Confirmation to the buyers electronically

18 DTTN is well received and supported by the industry 18

19 Excerpt of DTTN Participants in different industries

20 Excerpt of DTTN Participants - Forwarders

21 Excerpt of DTTN Participants - Others

22 Success Cases Sharing 22

23 ( Customer Success Case DTTN as UNIQUE gateway between Tyco & Tyco s partners for document exchange (Purchase to Delivery) Carriers 5. Master SO (EDIFACT) 3b. DN Drop Ship (File Format: XML) 4. Shipping Order, CI, PL (File Format: XML) 5. Master SO (File Format: XML) Forwarder 1. Sales Order (X.12) 6. Invoice (File Format: XML) Buyer 7. Tyco Invoice (X.12) 1. Sales Order (SAP) 3a DN EDI (SAP) Suppliers 3a. DN EDI (Excel) 3b. DN Drop Ship (Excel) 6. Invoice (CSV) 4. Shipping Order, CI, PL (SAP) 6. Invoice (SAP) ( 7. Tyco Invoice (SAP) Tyco 2. EDI Purchase Order SO - shipping order/ 落貨紙 CI - commercial invoice / 商業發票 PL - packing list / 提單 BL - bill of lading / 裝箱單

Reference Cases Buyer Management Service 2.

9. Invoice, Packing List, Bill of Lading TDS 4.

Invoice, Packing List, Bill of Lading Suppliers 1.

24 Reference Cases Buyer Management Service 2. Purchase Order 10. Clean Document set 3. Purchase Order 7. Bill of Lading Otto International Asia Buying Office 9. Invoice, Packing List, Bill of Lading TDS 4. Invoice, Packing List, Shipping Order 8. Invoice, Packing List, Bill of Lading Suppliers 1. Purchase Order Goods Delivery Otto UK Buyer 12. Invoice, Packing List, Bill of Lading, e/co Freight Forwarder Physical Data

25 Freescale A Seller-Driven Case Freescale Sales Backend Shipping Dept - Operators 9 Shipping Cartons + INV + PL + SLI Freight Forwarders Shipping Dept - Admin 1 Sales Information 2 Draft SLI 3 Confirmed SLI TDS 8 Printed Ship Label 4 SLI + INV 7 AWB/SWB 10 Generate TDEC 5 SLI + INV 6 AWB/SWB 11 Trade Declaration Tradelink ValuNet Physical Data

26 The Digital Express Link to your Business Partners Worldwide

Digital Trade & Transportation Network and the EPCglobal Network

Add Value to Your Business with the Digital Trade & Transportation Network and the EPCglobal Network 13 April 2005 1 Tradelink Highlights Agenda Digital Trade and Transportation Network (DTTN) What is